Wall Street is seeing notable volatility as President Trump intensifies his public criticism of Federal Reserve Chairman Jerome Powell.
Trump has pushed for immediate interest-rate cuts to boost the economy, at one point threatening on social media to remove Powell, then softening his stance during a later Oval Office meeting.
Economists, including Mark Zandi of Moody’s Analytics, generally expect no change in interest rates at the upcoming May Federal Reserve meeting. They say monetary policy is likely to remain steady until there is greater clarity on trade disputes and broader economic policy.
Investors are increasingly worried about any actions that could undermine Fed independence, a concern rooted in historical episodes where political interference contributed to higher inflation.